Finding 1146107 (2023-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-06-30

AI Summary

  • Core Issue: Lack of proper internal controls, specifically no review and approval process for quarterly financial reports.
  • Impacted Requirements: Non-compliance with Title 2 U.S. CFR Part 200, which mandates effective internal controls for managing federal awards.
  • Recommended Follow-Up: Enhance internal controls to ensure that all quarterly financial reports undergo proper review and approval.

Finding Text

U.S. Department of the Treasury Passed Through the Nevada Housing Division COVID‐19: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027 Reporting Significant Deficiency in Internal Control Over Compliance Grant Award Number: SLFRP2634 Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: There was no evidence of review and approval (segregation of duties) between the preparer and reviewer of the quarterly financial reports. Cause: The Foundation did not have internal controls to ensure proper review and approval (segregation of duties) between the preparer and reviewer of the quarterly financial reports. Effect: Inaccurate information could be reported to the federal awarding agency. Questioned Costs: None noted. Context/sampling: One quarterly financial report was required to be filed during the fiscal year. Report Finding from Prior Year(s): No. Recommendation: We recommend the Foundation enhance the internal controls to ensure quarterly financial reports are reviewed and approved. Views of Responsible Officials: The Foundation agrees with this finding; see corrective action plan.

Categories

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 569662 2023-003
    Significant Deficiency
  • 569663 2023-004
    Significant Deficiency
  • 569664 2023-003
    Significant Deficiency
  • 569665 2023-004
    Significant Deficiency
  • 1146104 2023-003
    Significant Deficiency
  • 1146105 2023-004
    Significant Deficiency
  • 1146106 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $445,086
14.218 Community Development Block Grants/entitlement Grants $413,200